Odisha is to receive a whopping Rs 31,421.67 crore in 2017-18 from the Centre through the divisible net proceeds of Union taxes and duties as mandated by the 14th Finance Commission which represents an over 13 per cent year-on-year increase over 2016-17.
According to the Budget 2017-18 tabled in the Parliament on Wednesday by Finance Minister Arun Jaitely, Odisha, with a share of 4.652 per cent in Union’s net tax proceeds as mandated by 14th FC, will receive Rs 9,255 crore share from Corporation Tax, Rs 8,091.87 crore from Income Tax, Rs 4,417.69 crore from Customs and Rs 4,617.74 crore from Union Excise Duties in 2017-18. Similarly, Odisha, with a mandated 14th FC share of 4.744 per cent in the total Service Tax collected by the Centre, will see transfer of Rs 5,038.98 crore under this head in 2017-18. Odisha, thus, in 2017-18, is the 7th largest beneficiary State in availing the divisible Union tax and duties proceeds transferred to the States. The top-10 beneficiary list is led by Uttar Pradesh.
Significantly, the fund flow from the Union Government via the divisible tax pool to Odisha post the 14th Finance Commission recommendations have zoomed up by 106 per cent during the period of 2013-14 to 2017-18. In 2013-14, Odisha has received Rs 15,247 crore as its share in the divisible Union taxes and duties. In comparison to 2016-17, Odisha would be receiving Rs 3,736 crore more from the Centre via the tax and duties devolution.
While the 14th FC has awarded to Odisha a sum of over Rs 35,835 crore for the year 2017-18 on the assumption of a Union divisible tax pool of over Rs 7,72,304 crore, the real divisible tax and duties proceeds pool projected for 2017-18 in the Budget in contrast stood at mere Rs 6,74,565 crore only.
The result: Odisha has received nearly Rs 4,413 crore less than the projected award by 14th FC for 2017-18. However, the fact needs to borne out here is that owing to the global slowdown and its all-round affect on the Indian economy and its resultant shadow on Union tax collection has resulted in a lower gross revenue collection than forecasted by the 14th FC.